• Home
• /
• Business

Stocks narrowly mixed as investors watch Mideast

Oil rose near $40 a barrel Monday after the conflict between Israel and Gaza's Hamas rulers raised tensions in the Middle East. Light, sweet crude rose $1.24 to $38.96 a barrel on the New York Mercantile Exchange.

The advance in oil was welcome for some investors who have worried that plunging prices signaled a long and severe recession. Oil has fallen more than $100 from its peak of $147.27 a barrel on July 11 as a slowing economy curbed demand. The increase helped oil companies, with Exxon Mobil Corp. shares up more than 1 percent.

However, investors also digested a potential blow to dealmaking on Wall Street. On Sunday, Kuwait's government canceled its $17.4 billion K-Dow Petrochemicals joint venture with Dow Chemical Co., saying it was "very risky" because of the global financial crisis and low oil prices. The joint venture was set to begin Thursday.

Rohm & Haas Co. maintains that its proposed $15.3 billion takeover by Dow Chemical won't be affected by Dow's substantial loss of income from the venture. But investors punished shares, driving them down more than 20 percent to $50.61, compared with their Friday close of $63.56. Dow Chemical shares lost almost 9 percent.

The Dow Jones industrial average rose 5.49, or 0.06 percent, to 8,521.04.

Broader indexes were mixed. The Standard & Poor's 500 index rose 0.22, or 0.03 percent, to 873.02; the Nasdaq composite index fell 1.35, or 0.09 percent, to 1,528.89.